With high mortgage rates and home prices amid the ongoing housing crunch, some homebuyers – especially first timers – are looking for ways to get a foot in the door of the housing market.

With fewer homes at starter price points available. some young buyers are jumping up a tier or two to larger and more expensive properties.

For homeowners who find themselves with a lot of extra space but not a lot of extra money, setting aside a spare room (or rooms) for short-term rental can be a solid option.

Before diving into the world of short-term rentals, it is essential to understand local regulations and zoning laws. Some areas have strict rules about the duration and frequency of short-term occupation. Familiarize yourself with the legal landscape and get any necessary permits.

Once you are prepared to avoid potential entanglements, you can create a welcoming space that attracts guests and sets the stage for a successful enterprise.

Start by preparing the space. Choose your target audience - whether business travelers, vacationers, or a mix of both. Think about the small details, such as high-speed internet, smart home features, and local recommendations.

Advertising is key. First impressions matter, especially in the online world of short-term rentals. Invest in professional photography to highlight the home's best features. Craft a compelling listing that highlights the unique aspects of your property and its surroundings.

Figure out a competitive yet profitable pricing strategy. Research similar properties in your area to gauge market rates and adjust pricing considering factors such as location, seasonality, local events, and amenities. You might offer discounts for longer stays or implement dynamic pricing to maximize occupancy.

Be transparent about what guests can expect during their stay, including house rules, check-in procedures, and any added fees. Building a positive reputation in the short-term rental market relies heavily on communication. Respond promptly to guest inquiries, provide clear instructions, and address concerns promptly. Clear messaging sets the foundation for positive guest experiences (and reviews!).

Think about the little touches that will be especially memorable. You will be hard-pressed to find a guest who doesn't like a well-stocked fridge, pantry and/or bar. Families love a wide variety of toys, games and other distractions for the littles. Don't forget privacy. Although guests want the owners to be accessible, they don't necessarily want to hang out. Private entrances, rooms and tables are appreciated, too. Going the extra mile to ensure a seamless and enjoyable stay can lead to positive reviews and repeat business.

Establish a reliable cleaning routine between guests and address any maintenance issues promptly. A well-kept property also contributes to positive reviews and word-of-mouth recommendations.

Stay informed about industry developments and adapt your strategy accordingly. Be flexible to changing circumstances. Embracing new technologies and platforms can also help you stay competitive.

Whether to supplement income, cover mortgage payments, or simply embrace a new way of living, the short-term rental market offers a wealth of opportunities.